This e-newsletter gives you an overview of international corporate tax developments being reported globally by KPMG member firms in the Europe and Africa regions between 1 December and 31 December 2012.
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Tax area concerned |
Relevant date/case reference |
Description of measures and publication link
(Considerations in italic where necessary) |
| Belgium |
| Tax legislation adopted and regulatory update |
VAT |
1 January 2013 |
Belgium adopted a law implementing the European Directive n°2010/45/EU amending the rules on invoicing. This law eases the rules on electronic invoicing. Furthermore, the rules regarding the chargeability of the VAT, self-billing and receipt of payment are also modified. The new rules are applicable as from 1 January 2013.
Read more |
As from 1 January 2013, the place of supply rules concerning long-term lease of vehicles to non-business customers (B2C), including the leasing of company cars to employees for consideration (actual payment or salary sacrifice), will be subject to a significant change in Belgium.
Read more |
| December 2012 |
The Belgian tax authorities published guidelines for purposes of determining the VAT deduction for company cars.
Read more |
The authorities in Belgium have provided transitional guidance concerning application of new rules for determining the chargeability of VAT.
Read more |
| Social security |
1 January 2012 |
The Belgian social security authorities have confirmed that they agree with an extension of the social security exemption of expatriate allowances for certain expatriates assigned to Belgium. This policy applies retroactively, from 1 January 2012.
Read more |
| Corporate income tax |
1 January 2013 |
Key tax measures for companies in the law on fiscal and financial provisions as of 1 January 2013 include measures with respect to:
| • |
Notional interest deduction: abolition of transfer to subsequent years of assessment and transitional measures |
| • |
Disallowed expenses: modification benefit in kind on company cars |
| • |
Adjustment regarding the investment deduction in case of transfer of right to use the investment |
Read more
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A new law modifies several elements of the Belgian tax regime as relating to the taxation of non-residents, and introduces two new categories of taxable income for non-resident income tax purposes.
| • |
The first category includes income for which a tax treaty allocates to Belgium the right to tax such income but which, until now, was not subject to tax when paid or attributed to non-residents. |
| • |
The second category to be subject to non-resident income tax concerns situations when no tax treaty is applicable. |
Certain provisions are effective 1 January 2013. Read more
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| Cyprus |
| Tax legislation adopted and regulatory update |
VAT |
13/14 January 2013 and 13 January 2014 |
The VAT rate in Cyprus will change:
| • |
Effective 14 January 2013, the current standard VAT rate of 17% will increase to 18% |
| • |
Effective 13 January 2014, the standard VAT rate of 18% will then increase again to 19% |
| • |
Effective 13 January 2014, the reduced VAT rate will increases from 8% to 9% |
Read the TaxNewsFlash and Indirect Tax Update for more information. |
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| Czech Republic |
| Tax legislation adopted and regulatory update |
VAT / Corporate income tax |
1 January 2013 |
Recent tax developments in the Czech Republic include the following legislative and judicial developments:
| • |
Possible VAT rate changes beginning January 2013 |
| • |
Reorganization of the tax authorities |
| • |
Reduced time in which to register for tax |
| • |
‘Second pillar’ of pension reform |
| • |
Changes in employment tax |
| • |
New instructions on transfer prices for services between related parties |
| • |
Court finds contractual price can only be increased if explicitly agreed beforehand |
Read more
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| VAT/ Individual income tax/ Withholding tax /Excise tax |
1 January 2013 |
The Czech Republic’s president approved austerity measures and technical amendments with respect to the VAT law, individual income tax, withholding tax, and excise tax —which are effective beginning 1 January 2013.
Read more |
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| Denmark |
| Tax legislation adopted and regulatory update |
Corporate income tax / Individual income tax |
2011 |
The Danish tax authorities (SKAT) published a ‘register’ showing the tax payments made by Danish companies in the year 2011.
Read more |
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| Estonia |
| Tax legislation adopted and regulatory update |
Budget |
1 January 2013 |
Changes to the tax laws in Estonia are effective in 2013, including:
| • |
An increase in the social tax, but a reduction in unemployment insurance premiums |
| • |
An increase in the excise tax rates for alcohol and tobacco products |
Read more
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| European Commission |
| Tax legislation adopted and regulatory update |
Customs |
1 January 2014 |
The European Union adopted a new Generalized Scheme of Preferences (GSP) which provides for reduced tariff rates to apply to goods imported into the EU from so-called ‘beneficiary countries’ beginning 1 January 2014.
For more information read the following TaxNewsFlash and Trade and Customs Alert |
| Tax fraud and evasion |
December 2012 |
The European Commission issued a ‘Communication on an Action Plan’ against tax fraud and evasion, and including recommendations on a coordinated EU approach toward tax havens and aggressive tax planning.
Read more |
| 1 January 2013 |
The European Commission issued an announcement that serves as a reminder that new rules to improve the EU Member States’ ability to assess and collect the taxes will be effective 1 January 2013.
Read more |
| Intellectual property rights |
December 2012 |
The European Commission announced the adoption of an ‘action plan’ to address infringements of intellectual property rights (IPR) for 2013-2017.
Read more |
| Car taxation |
December 2012 |
The European Commission presented a ‘communication’ to clarify EU rules on car taxation and to recommend measures intended to strengthen the single market in this area; reduce issues encountered by citizens and businesses in moving cars between EU Member States, and remove obstacles for cross-border rentals.
Read more |
| VAT |
December 2012 |
European Commission adopted a final proposal in a package of measures that is intended to standardize the VAT treatment of telecommunications, broadcasting and electronic services.
Read more |
| 1 January 2013 |
The European Commission issued a reminder that new EU VAT rules are effective across the EU beginning 1 January 2013.
Read more about the changes and the EC reminder. |
| Financial transaction tax |
December 2012 |
The EU Parliament approved the plan of 11 EU Member States to introduce a financial transaction tax.
Read more |
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| Finland |
| Tax legislation adopted and regulatory update |
Budget |
1 January 2013 |
The Budget tax proposals for 2013 (published by the Finnish government in September 2012) include measures to revise certain provisions of Finland’s direct taxation laws. The new law includes measures to increase the VAT rate and the Finnish securities market law will undergo a significant reform with new legislation having an effective date of 1 January 2013.
Read more |
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| France |
| Proposed legislation |
Budget |
1 January 2013 |
The National Assembly passed the Finance Act for 2013 (Loi de Finances 2013) and the Third Corrective Finance Act for 2012 (3eme Projet de Loi de Finances rectificative pour 2012). Enactment is still pending, subject to the opinion of the Constitutional Court. Changes affect corporations and individuals. Also VAT rate changes are pending.
For more information, read the Fidal and STC information note. |
| Administrative and case law |
Individual income tax |
29 December 2012 |
On 29 December 2012 the Constitutional Court invalidated certain provisions in a recently passed package of tax laws as unconstitutional —in particular, the proposed imposition of a 75% rate of individual income tax on salaries exceeding €1 million.
Read more |
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| Germany |
| Proposed legislation |
Budget |
December 2012 |
The upper house (Bundesrat) of the German parliament denied its consent to two pending tax bills, including the 2013 Tax Act because certain proposals had not been considered by the lower house (Bundestag).
Read more |
| Administrative and case law |
Corporate income tax |
December 2012 |
Under German tax law, business assets may be written down to the lower going-concern value if their impairment in value is expected to be permanent. The German federal tax court ruled that the write-down, however, must be reversed if the assets’ value increases.
Read more |
| Pensions |
Odar v. Baxter Deutschland
GMbH, C-152/11 (6 December 2012) |
The Court of Justice for the European Union issued a judgment finding that a social plan may provide for reduced compensation paid to workers approaching retirement age, but that if the early retirement is due to the worker’s disability, a reduction in the calculation can constitute a discrimination on grounds of disability—one that is prohibited by EU law.
Read more |
| Other |
Budget |
2013 |
The German legislature is considering a number of tax law proposals that could result in significant changes to the taxation of German investments by U.S. and other multinationals. KPMG Germany prepared an overview of the pending changes.
Read more |
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| Ireland |
| Tax legislation adopted and regulatory update |
Budget |
2013 |
On 5 December 2012 Ireland’s Minister of Finance introduced tax provisions in the Budget 2013.
Read more |
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| Luxembourg |
| Tax legislation adopted and regulatory update |
Budget |
2013 |
On 13 December 2012 Luxembourg’s Parliament passed both the 2013 budget (bill 6500) and the 2013 tax package (bill 6497).
Read more |
| Stock option |
1 January 2013 |
The Luxembourg tax authorities issued a new circular (LIR n° 104/2 (20 December 2012)) concerning the taxation of stock option plans. This circular is effective 1 January 2013, and replaces prior guidance dated 11 January 2002.
Read more |
| Corporate income tax |
2013 |
On 21 December 2012 The Luxembourg tax authorities issued guidance on the rules for computation of the minimum taxation that applies for corporate taxpayers, pursuant to the 2013 Tax Package that was passed by the Luxembourg Parliament on 13 December 2012.
Read more |
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| The Netherlands |
| Tax legislation adopted and regulatory update |
Incentives |
1 January 2013 |
The research and development deduction for 2013 has been set at 54% (up from the current rate of 40%).
Read more |
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| Norway |
| Tax legislation adopted and regulatory update |
VAT |
1 January 2013 |
Recent VAT developments in Norway include the following:
| • |
Registration exemption for foreign carriers reintroduced |
| • |
Road and rail VAT exemption lapses |
Read more
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| Poland |
| Tax legislation adopted and regulatory update |
Corporate income tax |
1 January 2013 |
The following corporate tax law changes in Poland will be effective 1 January 2013:
| • |
Tax treatment of costs when the taxpayer fails to meet its financial obligations with regard to payments to contractors |
| • |
A new provision will extend the definition of a leasing arrangement to apply to the leasing of a perpetual usufruct (use) of land |
Read more |
| VAT |
December 2012 |
Poland’s Ministry of Finance issued guidance regarding the VAT treatment of cash bonus (discount) payments.
Read more |
| 1 January 2013 |
Legislation containing amendments to Poland’s VAT law was published in the official journal on 30 November 2012. The VAT amendments are effective 1 January 2013.
Read more |
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| Serbia |
| Tax legislation adopted and regulatory update |
Personal property tax/Excise tax |
December 2012 |
Recent guidance in Serbia was issued related to:
| • |
Tax information or returns filed by individuals and payers of personal property tax. Read more |
| • |
Refunds of excise tax on oil derivative products used as fuel for agricultural purposes. Read more |
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| Corporate income tax |
25 December 2012/1 January 2013 |
Changes to the tax laws in Serbia were passed by the Serbian Parliament in December 2012 and are effective either beginning 25 December 2012 or 1 January 2013. The changes include:
| • |
An increase in the corporate income tax rate to 15% (from 10%) |
| • |
The due date for submitting 2012 returns is 11 March 2013 (i.e. within 180 days after the end of the period for which the tax liability is determined) |
| • |
The repeal of certain tax incentives |
| • |
The introduction of special rules for taxing payments of dividends, interest, authorship fees, service fees etc. made to companies located in jurisdictions having a preferential tax system |
| • |
Revision of the transfer pricing rules |
Read more
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| Withholding tax |
December 2012 |
Serbia published in the official gazette (25 December 2012) a ‘rulebook’ listing those jurisdictions deemed to have preferential tax systems. Payments to these listed jurisdictions may be subject to a 25% rate of withholding tax.
Read more
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| Excise tax |
18 December 2012 |
In Serbia, the law on excise tax amendments (dated 17 December 2012) has been enacted and is effective 18 December 2012. The changes generally relate to the taxation of oil derivates and tobacco products.
Read more
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| Slovenia |
| Tax legislation adopted and regulatory update |
VAT |
1 January 2013 |
Legislation amending the Slovene VAT law (as published in the official journal in November 2012) is effective beginning 1 January 2013.
Read more |
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| Spain |
| Tax legislation adopted and regulatory update |
VAT |
1 January 2013 |
In Spain, changes to the regulations on invoicing requirements are effective 1 January 2013.
Read more |
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| Sweden |
| Administrative and case law |
Individual income tax |
6 December 2012 |
Sweden’s Administrative Court rendered a judgment concluding that carried interest had to be taxed as income from employment.
Read more |
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| Switzerland |
| Other |
DTT |
December 2012 |
KPMG in Switzerland published an interactive map and overview of the current income tax treaty network from a Swiss perspective.
View now |
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| Turkey |
| Tax legislation adopted and regulatory update |
Financial leasing law |
December 2012 |
In Turkey, a financial leasing law (No. 6361) was published 13 December 2012, replacing the prior financial leasing law. The new law provides for beneficial tax treatment of financial leasing transactions (compared to operational leasing transactions), and also provides greater clarity of these benefits for cross-border aircraft leasing transactions.
Read more |
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| Ukraine |
| Tax legislation adopted and regulatory update |
Corporate income tax |
December 2012 |
According to Ukraine’s tax administration, a company that receives engineering services from a non-resident but does not import any equipment under the contract is not allowed to deduct for tax purposes the expenses related to the engineering services.
Read more |
| VAT |
December 2012 |
Ukraine’s tax administration has released guidance on the allocation of input VAT credit for agricultural companies switching to a special VAT regime.
Read more |
| Budget |
December 2012 |
Reports from Ukraine reflect the following measures:
| • |
Parliament withdrew the draft law on transfer pricing |
| • |
Application of the ‘green tariff’ will begin 1 April 2013 |
| • |
All companies must amend their registered documents according to the new economic activity classifications by the end of 2012 |
| • |
Rates for certain taxes are to increase |
| • |
Excise tax is imposed on sales of securities and derivatives |
| • |
Tax authorities clarified the procedure for application of penalties to unified taxpayers. |
Read more |
| Proposed legislation |
Excise tax |
December 2012 |
Ukraine’s parliament (Verkhovna Rada) passed measures to impose an excise tax on sale transactions of securities and of derivates. Enactment of the legislation is pending approval by the chairman of the parliament and signature by the president.
Read more |
| Treaties |
DTT |
November 2012 |
In November 2012 representatives of Ukraine and Cyprus signed an income tax treaty. Once the new treaty is ratified by both countries, it will replace the existing USSR-Cyprus income tax treaty (with Ukraine as a legal successor).
Read more |
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| United Kingdom |
| Tax legislation adopted and regulatory update |
Corporate income tax |
December 2012 |
A report released by the Committee of Public Accounts (a Commons Select Committee of the UK Parliament) focuses on corporation tax revenues and on global companies that may be ‘paying little or no corporation tax’ in the UK.
Read more |
| Proposed legislation |
Budget |
December 2012 |
KPMG in the UK published commentaries as to what the Autumn Statement may hold and assess the challenges and competing demands that the Chancellor will have to address - read more.
Read a summary of the Autumn statement. |
| 2013 |
Draft clauses for the 2013 Finance Bill were published on Tuesday, 11 December 2012 and include measures with respect to:
| • |
Capital allowances |
| • |
Individual tax provisions |
| • |
VAT |
Read more |
| Administrative and case law |
VAT |
Secret Hotels2
Ltd (formerly
Medhotels) v.
HMRC, No. UT/FTC/56/2010
(UK Ct. App. 3 December 2012) |
The UK Court of Appeal issued a decision concluding that a hotel-marketing website was acting as a principal, and not a disclosed agent, for hotels and thus was responsible for the VAT.
Read more |
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